Karachi, May 17, 2020: After correction witnessed in the last week, the KSE-100 index gained 2.2 percent WoW, to close at 34,008. Moreover, news flows on the upcoming budget also begun to surface this week.
Volumes also increased this week (+15 percent WoW), however traded value took a dip (-21 percent WoW). Moody’s report was released this week where the rating agency put Pakistan under review for downgrade, which had little impact on the local bourse; while semi-annual MSCI EM review also remained a non-event.
Foreigners remained sellers with net selling accumulating to US$10.9 million this week, with notable selling in the Banking (US$2.9 million) and Power (US$2.4 million) sectors. On the sector front, Cements (+5 percent WoW) continued its ride over contract award of Diamer Basha Dam.
During the week, FEROZ gained 44 percent WoW as the company announced agreement between its subsidiary and Gilead for manufacturing experimental drug Remdesivir. Moreover, Pharma sector gained 6 percent WoW over anticipation of other companies to ink similar agreements.
The Fertilizer sector also outperformed the bourse (+4 percent WoW) as the government announced a relief package for the agriculture sector that included subsidies on fertilizer prices.